1/8 inch of lees should be fine. Taste it and see!
If you want to bottle, that's fine. If it were me, I'd add one campden tablet per gallon into the bottling bucket (dissolved in some hot water) and then bottle. And yes, it's the same bottling procedure as for beer. Make sure you have a decent corker, though!
Broken Leg Brewery
Giving beer a leg to stand on since 2006